1. The baroque period is the age of absolutism. In other words, the aristocrats had the power to control everything. Did this fact help the development of music? Please explain why.

2. If the Treasury issues 30-day Treasury bills at a discount rate =1.60%, what is price that must be paid per $100 face value (4 decimal points) to the winning bid?

3. The Kromwell Community Bank's asset portfolio has an average duration of 6 years and its liability portfolio has an average duration of 2.5 years. The bank has $500 million in total assets and $450 million in liabilities. The Kromwell Community Bank is thinking about hedging its risk by using a Treasury Bond futures contract whose underlying's duration is 7.5 years and has a price of $98,000. How many futures contracts will it need to hedge its risk?

A. buy 2,381 contracts

B. sell 2,381 contracts

C. buy 2,551 contracts

D. sell 2,551 contracts